The Byron Bay Cookie Company has fallen foul of the Australian Tax Office which is seeking to wind up the gourmet biscuit business in documents filed with the Federal Court.
The cookie company is owned by Slater International, which also owns the Luken & May Biscuits and Falwasser Crispbreads brands.
In a statement, Byron Bay Cookie Company said it had been advised that the ATO had issued a court notice against part of the manufacturing division of the company.
“We are attending to the matter and will issue a formal statement in due course. The Byron Bay Cookie Company has been proudly Australian owned and baked for 23 years and we are dedicated to ensure the continued success of our organisation,” the statement said.
Though company executives were not available for comment today, the company's director Jacqueline Schurig told The Sydney Morning Herald that the company expected to continue operating through this year.
The news follows hot on the heels of an announcement by the cookie company of a new global franchising model on the back of its retail store success.
The company also recently experienced a slice of Hollywood fame when its gluten-free Sticky Date & Ginger treats were selected for the Academy Awards celebrity gift bags. It also announced at the time it would starting baking its cookies out of California this year.
The Byron Bay Cookie Company supplies cafes and gourmet food stores across Australia including McCafe, Michel's Patisserie, and selected Woolworths, Coles and IGA Supermarkets.
It also supplies international stores such as Sainsbury's and Selfridges in the UK as well as department stores in Asia, Japan, Middle East and North America.
It has stores in David Jones in the major capital cities and has partnerships with Qantas Airlines, Virgin Australia, Tiger and Strategic Airlines.
Slater International chairman, Gordon Slater - an orthopaedic surgeon by profession - has in the past talked publicly about the financial pressures of operating in the Australian market, citing challenges of the Australian dollar and payroll tax.
He bought into the Byron Bay Cookie Company 12 years ago.